Buy into Bondi's property market for $96

By news.com.au

Add a comment
Sydney Bondi Beach, Australia. Photo/supplied
Sydney Bondi Beach, Australia. Photo/supplied

An investment company is offering the chance to dip your toes into the Bondi property market for A$96 - and it really is a dip.

The A$96 will get you a brick in a two-bedroom flat in Ramsgate Avenue, along with up to 9,999 others.

And it's a rental, so dropping in for a shower to wash the sand and salt off after a swim isn't an option.

The Bondi Beach pad is the latest investment for newbie company BrickX, whose expansion into the iconic 2026 postcode brings its property portfolio to six.

The BrickX investment scheme, publicly launched two months ago, "sells" houses - a brick at a time - in a scheme it billed as a "stock exchange" for residential property.

BrickX Bondi Beach house interior. Photo/supplied
BrickX Bondi Beach house interior. Photo/supplied

Investors buy single "bricks" under a system called "fractional ownership". Each property is divided into 10,000 bricks.

You can buy and sell bricks whenever they like, and can own up to a maximum of five per cent of any single property's bricks.

In Bondi, that gets you up 500 bricks in a renovated ground-floor two-bedder in a small Art Deco building block of four, with a sunroom, floorboards, shared garden courtyard and a broad, steady supply of prospective tenants.

BrickX chief executive Anthony Millet says Bondi hasn't been chosen for its iconic status, but because property experts who select the company's properties believe it makes good sense.

The exterior of BrickX Bondi Beach house. Photo/supplied
The exterior of BrickX Bondi Beach house. Photo/supplied

Bondi isn't forecast to be a victim of dire apartment oversupply warnings being forecast in Melbourne, Brisbane and other areas of Sydney.

"We look at suburbs that have consistently high tenancy demands, scarcity of stock for rent and buying a limited opportunity for over-development, in Bondi there's not much you can develop in meaningful way," he said.

Two months in, BrickX has grown from 100 investors at launch to 1400, with half of those buyers coming from the hopeful first-home buyers category, Mr Millet said.

And it is a frustration with spiralling property prices that has seen investors turn to the "fractional ownership" market, Mr Millet said.

BrickX Bondi Beach house courtyard. Photo/supplied
BrickX Bondi Beach house courtyard. Photo/supplied

"Frustration is a common theme from those who want to invest, and either don't have enough cash, or are looking for an alternative to traipsing round open houses with so many others, and missing out," he said.

"First homebuyers are 50 per cent of our investors., but there are also people who own their own homes and want to invest a smaller amount without buying the whole thing, and divest in an easier way than owning an entire property."

- news.com.au

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

Have your say

1200 characters left

By and large our readers' comments are respectful and courteous. We're sure you'll fit in well.
View commenting guidelines.

© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf05 at 25 Jan 2017 07:39:45 Processing Time: 776ms